Ruth Is Quite Attractive (A 4 on a 5-Point Scale)

question 11

Multiple Choice

Ruth is quite attractive (a 4 on a 5-point scale) , but Naomi is strikingly attractive (a 5 on a 5-point scale) . Research suggests that if Ruth makes $35,000 a year on her job, Naomi will probably make _____ doing the same job.

• A) slightly less money
• B) the same amount
• C) more money
• D) significantly less money

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Definitions:

Output

Represents the total amount of goods and services produced by an economy over a specific period.

Average Variable Cost

The total variable costs (costs that change with the amount of output produced) divided by the quantity of output produced.

Fixed Cost

Costs that do not vary with the level of output or activity, such as rent or salaries.

Marginal Cost

The increased cost incurred from making one more unit of a product or service.